Comparison between China and India’s Financial Services RCA Indices and Its Enlightenment on China

Abstract

China and India are two of the most important developing countries. In this paper we first state the current situations of financial services trade in China and in India. Next, we compare China’s financial services RCA index with India’s and find that India has the greater values of RCA indices than China. Thereafter, this paper tries to give the enlightenments of India’s financial services trade on China’s financial reform, which includes speeding up the financial reform, improving the relevant legal system and improving the rural financial market.